Is it cheaper for a lender to foreclose on a property versus a short sale?
Although lenders will face an upfront financial loss on the property, they rather accept a payoff and not go through the foreclosure process with the endless coming up fees. Lenders will have to pay thousands of dollars to hire a listing agent and asset company, collect Broker Price Opinions (BPOs) and market data, and maintain the property for marketing or government, county, or city mandatory standards. In addition they have to pay upfront court fees, negotiate payments on property liens, and the company staff to legally proceed with the foreclosure. They are in the business of lending money not selling houses.